Illustration: Jaimee Lee Haddad.
On March 28, Karim Souhaid was officially named governor of BDL (Banque du Liban), Lebanon’s central bank, ending months of speculation over who would take the reins of Lebanon’s battered central bank. His appointment comes as the country’s economy remains in limbo and the plan for its future is still anyone’s guess.
The BDL Governor isn’t just some back-office bureaucrat crunching numbers. This job holds real power, and right now, all eyes are on it.
Let’s break it down.
1. What’s the BDL governor’s top mission?
In short: keep the financial system from falling apart.
The BDL governor sets Lebanon’s monetary policy i.e. the big-picture plan for how money moves in the country. They help decide interest rates, control inflation and try to keep the lira stable.
They also oversee the entire banking sector, making sure banks follow the rules and operate within legal and financial standards. The governor also plays a key role in ensuring “good governance" at the central bank, meaning its management and the Code of Money and Credit’s application. Under former governor Riad Salameh, that didn’t exactly go as it should have, and it played a major role in triggering Lebanon’s economic and financial crisis.
When it comes to restructuring the banking system or managing deposit repayment plans, the governor plays a central role alongside other regulatory bodies.
And another key responsibility: keeping Lebanon off international blacklists by promoting transparency and fighting financial crimes.
2. Why was Karim Souhaid a divisive pick for the job?
Karim Souhaid was officially appointed as Lebanon’s new central bank governor on March 28 — but his nomination didn’t exactly get a standing ovation.
For President Joseph Aoun, Souhaid was an obvious choice. In his view, Souhaid is the one most capable of helping the government draft real solutions, push key legislation forward, restore depositors’ rights and build a long-term monetary policy that actually holds up.
But not everyone was sold. Prime Minister Nawaf Salam in particular and some foreign diplomats weren’t thrilled. Their concern is that Souhaid is too close to Lebanon’s banking sector — and might prioritize protecting the banks over holding them accountable.
One big red flag, in their eyes, is that he’s someone who could shift the cost of paying back depositors onto the state — and by extension, taxpayers. That’s a tough sell in a country still reeling from the 2019 economic collapse.
Souhaid was also questioned about his rumored ties to Antoun Sehnaoui, head of SGBL bank and a key figure in the banking lobby’s hardline camp. Souhaid firmly denied any relationship, saying he had only met Sehnaoui once, at a social event in Paris “a few weeks ago.”
Another question mark hanging over Souhaid’s appointment is transparency: Will he fully open books to the audit firm, or selectively share information, like Salalmeh did with Alvarez & Marsal?
3. What are the biggest challenges ahead of him?
Souhaid isn’t walking into an easy job. He’s taking over the central bank at one of the most fragile moments in Lebanon’s economic history. Here are the three biggest challenges ahead:
a) Fixing the banking system:
Lebanon’s banking sector has been broken since the 2019 crisis. The new governor’s top priority, as laid out in the government’s official plan, is to lead the restructuring process while protecting depositors as much as possible. But this won’t be easy. Powerful banks and their political allies have blocked reform for years.
b) Sealing the deal with the IMF:
The International Monetary Fund (IMF) wants big reforms before it agrees to help Lebanon, including new laws on banking secrecy and bank restructuring. The IMF delegation has just been in Beirut, and they left with a promise from the government to deliver within a month. It’s now up to Souhaid to help make that happen.
c) Restoring trust and stability:
People still don’t trust the banking system. Many can’t access their deposits, and the lira remains fragile. Souhaid has to work with the government to keep things stable, rebuild confidence, and fight financial crimes and wrongdoing — not just for Lebanon’s sake, but to keep it off international watchlists.
